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Five Benefits of VA Home Loans

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I've written before about the benefits of a VA home loan regarding how easy the program is to work with. Over and above its ease, and the fantastic interest rates, another advantage of VA loans are the special bonuses the program offers Veterans. Heres a list of a few things Veterans are allowed to enjoy:

Closing Costs
Other loan programs cap the credits from the Seller at closing. Depending on the loan program, the maximum amount of closing costs the seller can pay is anywhere from 3-6% of the contract price. VA loans are different. When buying a home, a Veteran can have ALL of their loan costs paid by the Seller at closing, regardless of the amount.

Financial Credits
Closing cost credits are allowed on all programs, but VA loans allow for additional credits at closing. A credit at closing for a further 4% of the purchase price is acceptable for things like appliance purchases, and credits to repair things. For instance, if the homes carpet is awful, the VA will allow you to receive a credit at closing to replace the carpet.

Lenient Guidelines
VA guidelines are very lenient especially when it comes to significant credit events such as Bankruptcy and Foreclosures. Other loan programs require a waiting period of 3 years or more before another loan is allowed, but, the VA allows it after only two years. Even if your foreclosure was on a VA insured loan, Veterans could still get a new loan using their bonus entitlement.

Exceptions
All loan programs allow for exceptions, but VA loans go over and beyond what any other loan program offers. It doesnt matter what the situation is, the VA will review a scenario for approval even if it doesnt meet guidelines. Its approved if the circumstances make sense. Theyre excellent about compensating factors too.

No monthly Mortgage Insurance
A Veteran can buy a home with 0% down. Whats even more significant than that is this 100% financing comes with the benefit of having zero monthly mortgage insurance. Mortgage insurance can be quite expensive so not having to pay this at all is a huge benefit.

If youre looking into a VA loan and hear any negative feedback at all, then youre not working with a mortgage professional thats familiar with the program. For in-depth and accurate information about VA loans and the loan process in general, please contact me directly, and Id be happy to help!

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